5-Minute Work-out for EAR vs. APR

P. Peterson Drake
  Problem        APR            Frequency of                  EAR            
                                compounding                                  

     1           12%             quarterly                                   

     2            6%             quarterly                                   

     3            6%            semi-annual                                  

     4            4%             quarterly                                   

     5           18%              monthly                                    



Solutions to 5-minute Work-out

  Problem        APR            Frequency of                  EAR            
                                compounding                                  

     1           12%             quarterly                  12.55%           

     2            6%             quarterly                   6.14%           

     3            6%            semi-annual                  6.09%           

     4            4%             quarterly                   4.06%           

     5           18%              monthly                   19.56%